Cases - St George's Investment Co v Gemini Consulting Ltd [2004]
Record details
- Name
- St George's Investment Co v Gemini Consulting Ltd
- Date
- [2004]
- Citation
- AII ER (D) 105
- Legislation
- Keywords
- Rent review
- Summary
-
The tenant in this case took a lease of premises from 1997; the first rent review was on 25 December 2001. Following the appointment of an arbitrator to decide the new rent, the parties made submissions relating to an appropriate discount to be made to reflect onerous lease terms. The arbitrator issued their award in October 2003. The landlord applied to the court for the arbitrator's award to be set aside under section 68(1) of the Arbitration Act 1996, on the basis of serious irregularity which had occurred so as to cause a substantial injustice to the landlord.
The landlord's argument was that the arbitrator had produced a result which was not the subject of submissions before him and which the landlord had therefore had no opportunity to address. The award was contrary to the parties' agreed assumptions.
John Jarvis QC (sitting as a Deputy Judge of the High Court) held that the landlord's application would be allowed. He said:
'It seems to me that the award as presently formulated gives the appearance that the arbitrator has made his calculations on a basis which was contrary to the agreed assumptions between the parties'
He was satisfied that a substantial injustice to the landlord had occurred because of the irregularity. The court therefore set aside the award and ordered the dispute to be remitted to the arbitrator for reconsideration.